August 13, 2014 / 7:53 AM / 3 years ago

UPDATE 1-Meda lowers outlook after Q2 profit lags expectations

* Q2 EBITDA 993 mln SEK vs consensus 1.05 bln

* Sees full-year EBITDA margin in line with 2013

* Shares fall 6 percent (Adds detail, background, shares)

STOCKHOLM, Aug 13 (Reuters) - Swedish drug maker Meda posted a smaller rise than expected in second-quarter profit on Wednesday and lowered its outlook after it agreed to buy Italy’s Rottapharm, sending its shares down.

Meda, which itself has been seen as a takeover candidate and in April turned down approaches from U.S. firm Mylan, in July agreed to buy Rottapharm to boost profits and emerging market presence after the Italian firm scrapped its flotation plans.

Meda said it now sees a 2014 profit margin before interest, tax, depreciation and amortisation in line with last year’s 28.5 percent, and organic sales growth for Meda alone of 2-3 percent, provided the Rottapharm deal is completed as planned in October.

It had in May guided for organic sales growth, which excludes currency swings and acquisitions, of about 4 percent and an improved EBITDA margin.

Meda, which has the bulk of sales in western Europe, with the United States its single biggest market, has been pushing in recent years to expand in emerging markets.

Organic growth in the quarter was 4 percent helped by emerging markets growth of 26 percent.

“We continue to expect the rate of growth in emerging markets to fluctuate and vary between regions, markets, and quarters”, Meda said.

In western Europe organic growth was 1 percent while in the United States sales shrank 2 percent due to weaker sales of nasal allergy spray Asteprod.

EBITDA rose to 993 million crowns ($144.4 million) from a year-ago 922 million, mainly helped by strong sales in Europe and the United States of nasal allergy spray Dymista.

The mean forecast in a Reuters poll of analysts had been for 1,048 million.

Meda predicted full-year sales of around 15 billion crowns.

Its shares fell 6.7 percent at 0722 GMT to a near five-month low, lagging Stockholm’s blue-chip index

1 US dollar = 6.8769 Swedish crown Reporting by Helena Soderpalm, editing by Anna Ringstrom and William Hardy

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